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Forest Products Laboratory
One Gifford Pinchot Drive
Madison, WI 53726-2398
Phone: (608) 231-9200
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Title: Financial feasibility of a log sort yard handling small-diameter logs

Source: In: Proceedings of 2009 COFE: Environmentally Sound Forest Operations 32nd Annual Meeting of the Council on Forest Engineering June 15-18, 2009 North Tahoe Conference Center, Kings Beach, California Compiled by Bruce Hartsough and Bryce Stokes; 2009

Author(s)Han, Han-Sup; Bilek, Ted; Dramm, Rusty; Loeffler, Dan; Calkin, David

Publication Year: 2009  View PDF »

Category: Conference Proceedings
Associated Research Project(s):   FPL-4851-6A  FPL-4851-6A

Abstract: The value of the trees removed in fuel reduction thinning and restoration treatments could be enhanced if the wood were effectively evaluated and sorted for quality and highest value before delivery to the next manufacturing destination. However, past studies indicated that costs for running a log sort yard for small-diameter logs could outweigh the revenue generated by sorting and pre-processing those logs. This study was to evaluate the financial feasibility of running a log sort yard that serves as a log market to buy and sell small-diameter logs in western Montana. We modeled a log sort yard to process and sort small-diameter logs to seven products (sawlogs, house logs, stud logs, peeler logs, post & pole, pulpwood, and hog fuel). The financial feasibility of a log sort yard would largely depend on prices that the yard pays and product revenues that the yard receives from selling sorted and processed logs. The delivered log input costs represent 78.1% of the total sales revenue while the yard’s operating costs account for 17.7% of the revenue. The log sort yard operating cost was $3.85/piece or $71.46/MBF. Species and product types were important factors determining gross revenues. Douglas-fir would make the biggest contribution to the yard’s gross margin since this species both represents the largest volume (45% of the log) into the log sort yard and produces high value products (house logs and veneer logs).

Keywords: Forest products; economic aspects; forest products industry; lumber; planning; timber; grading; marketing; Montana; feasibility studies; value added; cost effectiveness; forest thinning; prices; market surveys; Douglas fir

Publication Review Process: Non-Refereed (Other)

File size: 59 kb(s)

Date posted: 10/06/2010
RITS Product ID: 31267
Current FPL Scientist associated with this product
Bilek, Ted

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